Peer-to-peer credit, also abbreviated as P2P credits, is the practice of lending money to individuals or businesses through online services that involve lenders with borrowers. Peer-to-peer credit firms often offer their services online and try to work with a lower surcharge and offer their services at a lower cost than traditional financial institutions. [Citation required] As a result, lenders can earn higher returns than savings products and investment products offered by banks, while borrowers can borrow at lower interest rates, even after the P2P credit company has benefited from a levy for the provision of the „match making“ platform and for the control of the borrower`s credit.     There is a risk that the borrower will lag behind the loans taken out by peer lending sites. The treatment of financial securities is linked to the question of ownership: with regard to personal loans, the problem is who owns the loans (notes) and how this property is transferred between the originator of the loan (the personal credit company) and the individual lender or lenders.   This question arises primarily when a peer-to-peer credit firm not only connects the lender and the borrower, but borrows money from users and lends it again. Such activity is interpreted as a sale of securities, and a broker-dealer license and registration of the person-to-person investment contract is necessary for the process to be legal. License and registration can be obtained from a market regulator such as the U.S. Securities and Exchange Commission (SEC) in the United States, the Ontario Securities Commission in Ontario, Canada, the Financial Markets Authority in France and Quebec, Canada, or the Financial Services Authority in the United Kingdom.
The two largest P2P platforms are Mintos and Twino, which hold more than 60% and 20% market share respectively. [Citation required] About 9 companies, considered a P2P investment platform, are currently present in Latvia. Mintos was founded in 2015. In September 2018, the total amount of loans financed by Mintos exceeded 1 billion euros. Most of the loans financed by Mintos are private loans, with auto loans in second place.  In 2016, Mintos raised 2 million EUROS in funds from Venture Capital Skillion Ventures, headquartered in Latvia.  The Twino investment platform was launched in 2015, although it has been a lender since 2009. Since its inception in 2009, TWINO has provided more than EUR 500 million in loans.
 More than 90% of loans on the TWINO platform are short for 1 to 3 months.  The liquidity issue has thus been addressed and, unlike traditional securitization markets, has made it more transparent for au pairs` credit applications for lenders and secondary buyers, who can access detailed information on each individual loan (without knowing the actual identity of borrowers) before deciding which loans should be financed.  Peer-to-peer companies are also required to submit their offers in a regularly updated prospectus.